slovenian capital market

Slovenian Capital Market

2

Table of Contents

Economic Outlook 3Ljubljana Stock Exchange Key Figures 4Ljubljana Stock Exchange Prime Market Companies 6

3 Slovenian Capital Market

Economic Outlook

The relatively strong growth in GDP continued in 2015 (2.9%), again largely on account of exports, but also due to stronger growth in private consumption. It is expected that in 2016, GDP growth will slow (1.7%), primarily owing to a significant decline in government investment upon the transition to the new financial perspective, but also due to lower growth in exports.

With the strengthening of economic activity, employment is rising in most private sector activities. It was up year-on-year particular-ly in manufacturing, and in trade, transportation and accommo-dation and food service activities. Since mid-2015, employment growth has also increased slightly in public services, where it was up year-on-year particularly in the health sector.

At the beginning of 2016, the volume of domestic non-banking sectors’ loans declined further; the net repayments of corporate and bank foreign liabilities were lower. Loan volume decreased by EUR 1.7 billion in the last 12 months; not taking into account the liquidation of two smaller banks, the deleveraging of non-banking sectors would remain similar to that one year before (EUR 1.3 billion), according to the estimate of the Institute for Macroeco-nomic Analysis and Development of the Republic of Slovenia.

Enterprises and NFIs continued to deleverage abroad in January, while the net repayments of banks eased. The growth of domes-tic non-banking sectors’ deposits has moderated notably owing to declining government deposits and smaller inflows of house-hold deposits, while the growth of corporate deposits is rising.

With increased inflows of EU funds and lower general govern-ment expenditure, January 2016 recorded a general government surplus on a cash basis. The year-on-year growth of general government revenue was almost entirely underpinned by the increased receipts from the EU budget related to the previous financial perspective. Social contributions paid were also high-er, while tax revenues were lower as the payment of a part of excise duties was postponed to the following month. General government expenditure was significantly lower year-on-year un-der the impact of the beginning of the implementation of the new financial perspective of the EU. This holds true particularly for payments of subsidies and investment expenditure.

Source: Institute for Macroeconomic Analysis and Development of the Republic of Slovenia

Economic Forecasts 2014 2015 2016E 2017E 2018E

GDP growth 3.0 2.9 1.7 2.4 2.3

Private consumption growth 0.7 1.7 2.1 1.7 1.7

Government consumption growth -0.1 0.7 0.9 0.2 0.1

Gross fixed capital formation growth 3.2 0.5 -3.0 6.0 5.0

Inflation (year average) 0.2 -0.5 -0.3 1.3 1.3

Unemployment (registered) 13.1 12.3 11.7 11.0 10.3

Labor productivity (GDP per employee) 2.5 1.4 0.8 1.5 1.7

Curr. acc. balance (in % GDP) 7.0 7.3 7.5 6.8 6.3

Source: Institute for Macroeconomic Analysis and Development of the Republic of Slovenia, Slovenian Economic Mirror, April 2016

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Ljubljana Stock Exchange Key Figures

Short Overview (30 December 2015) Benchmark index SBI TOP SBI TOP performance in 2015 –11.2%

(30 December 2014–30 December 2015) SBI TOP 5-year performance –18.13%

(30 December 2011–30 December 2015) Equity market capitalization EUR 5.52 bn Number of listed companies 56 Number of trading members 17 Number of securities 105

Equity market 47 Bond market 42 Short term securities 16 Legal framework EU Capital markets legislation

Code of Conduct according to OECD standards, LJSE Rules

2015 HighlightsYear 2015 experienced some drops but also some encouraging numbers. The Ljubljana Stock Exchange benchmark index SBI TOP finished the year negatively after three consecutive positive years and turnover and equity market capitalization decreased in comparison to the previous year. On the other hand, the year 2015 was one of the most successful years as regards issuing of bonds and commercial papers. The LJSE had 10 new bond listings and 6 issues of commercial papers.

Five Most Traded Shares in 2015

Security MarketTurnover in

EUR

Share in turnover

of shares

Share in total

turnoverKRKA Prime 122,762,061 36.8% 31.2%ZAVAROVALNICA TRIGLAV Prime 36,005,274 10.8% 9.2%PIVOVARNA LAŠKO Standard 31,314,365 9.4% 8.0%PETROL Prime 29,737,356 8.9% 7.6%TELEKOM SLOVENIJE Prime 25,475,847 7.6% 6.5%

Top Five Gainers in 2015

Gainers

"Price in EUR

31 Dec 2015"

Annual price

deviationTurnover in

EUR in 2015

"Market capitalisation

in 000 EUR 31 Dec 2015"

TEKSTINA 1.200 1100.0% 8,434 1,353KOMPAS MTS 34.80 140.0% 3,377 20,692KS NALOŽBE 0.600 130.8% 8,476 2,346SIVENT 0.320 100.0% 484 394KD 80.10 57.1% 293,180 14,934

Share Market Capitalization 2011–2015The total LJSE share market capitalization was EUR 5.52 billion at the end of December 2015, having decreased, mainly due to stock price decreases.

4.87 4.91 5.17

6.215.52

2011 2012 2013 2014 2015

(in EUR bn / Source: Ljubljana SE)

New Bond and Share Issues 2011–2015In 2015 the LJSE had ten new bond listings, with the total issue value of EUR 2,883.96 million. In addition, there was one capital increase, in the total amount of EUR 3.3 million, and six issues of commercial papers, in the total amount of EUR 109.26 million.

139.2

16.5

86.5

214.5

3.3

78.0

2011 2012 2013 2014 2015

Initial public offering Secondary public offering Capital increase New listing

(in EUR m / Source: Ljubljana SE)

2011 2012 2013 2014 2015

New bonds Bonds increase

3,081.2

1,091.3

774.5

54.9 39.5

3,671.8

316.9

2,884.0

275.0

(in EUR m / Source: Ljubljana SE)


Domestic Equity Trading 2010–2015The domestic equity trading volume recorded in 2015 amounted to EUR 333.67 million, with the total trading volume on the LJSE amounting to EUR 393.06 million. This translates into an aver-age monthly trading volume of EUR 32.8 million. Total trading volume without blocks was EUR 294.19 million. The majority of turnover was generated by share trades (84.89%), while bonds and commercial papers contributed a further 14.22%, 0.89%, respectively.

0.39

0.30 0.30

0.61

0.33

2011 2012 2013 2014 2015

(in EUR bn, single count / Source: Ljubljana SE)

SBI TOP SBI TOP is the blue-chip index of the Ljubljana Stock Exchange. Its basket currently includes the following constituents: Pharmaceutical company Krka Energy retailer Petrol Insurer Zavarovalnica Triglav Telecommunications operator Telekom Slovenije Reinsurer Pozavarovalnica Sava Port operator Luka Koper Home appliance producer Gorenje

2015 was a year of considerate decline for the Slovenian stock market. SBI TOP turned negative for the year, falling –11.2% year-on-year, and stood at 696.15 points on the last trading day of 2015.

Index Performance

Mar

201

3

Jun

2013

Sep

201

3

Dec

201

3

Mar

201

4

Jun

2014

Sep

201

4

Dec

201

4

Mar

201

5

Jun

2015

Sep

201

5

Dec

201

5

80

100

120

140

160DJIATXCROBEX

SBITOPPXDAX

Prime Market Companies

The Prime Market lists the most prominent and liquid companies on the Ljubljana Stock Exchange:

The most active LJSE-traded stock on the Prime Market in 2015

was Krka, which stood for 36.79% of all share trades. The LJSE Prime Market currently lists nine Slovenian blue chips, which ac-counted for 80.5% of the share trading volume in 2015. The oth-er two largest contributors to share trading were Zavarovalnica Triglav, which generated 10.79% of all share transactions, and Petrol, which contributed a further 8.91%.

Prime Market Companies in NumbersAverage

daily turnover in 2015 (in EUR)

Average number of trades

per day in 2015

Price change in 2015

Share of stocks' market capitalisation in free float

9 February 2016

Share of stocks' market capitalisation in foreign

ownership 31 December 2015GORENJE 75,403 16 -18.1% 61.1% 56.9%INTEREUROPA 2,137 3 -55.2% 43.4% 0.8%KRKA 487,151 44 9.4% 66.7% 23.8%LUKA KOPER 100,251 15 2.2% 37.9% 5.2%MERCATOR 3,773 1 13.9% 88.1% 98.5%PETROL 118,005 17 -9.9% 72.0% 20.9%POZAVAROVALNICA SAVA 35,389 8 -19.0% 68.8% 29.9%TELEKOM SLOVENIJE 101,095 19 -49.6% 31.9% 4.2%ZAVAROVALNICA TRIGLAV 142,878 21 -0.4% 31.0% 17.1%

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Ljubljana Stock Exchange Prime Market Companies

Krka Zavarovalnica Triglav Petrol

Telekom Slovenije Luka Koper Gorenje Pozavarovalnica Sava Mercator Intereuropa

Krka

Krka is one of the world’s leading generic pharmaceutical com-panies, with over 60 years of experience in the industry. It offers customers in over 70 countries a broad range of safe, high qual-ity and effective prescription pharmaceuticals, non-prescription and animal health products, supplemented by health resort and tourist services. The majority of Krka’s products are solid dosage pharmaceuticals. In addition to being the leader in the domes-tic market, Krka has a significant presence in East, Central and South East Europe. Krka is also expanding its presence in West Europe and Overseas markets.

Business Segment: Pharmaceuticals

Market capitalization (EUR m): 2,138.13

Free float (%): 66.75

Price on 30 December 2015 in EUR: 65.20

Price change in 2015 (%): 9.40

ISIN Code: SI0031102120

Bloomberg: KRKG SV

Reuters: KRKG.LJ

IR Officer: Peter Skubic

Webpage: www.krka.biz

Krka’s 2015 Relative Performance Against SBI TOP

2 Ja

n 20

15

2 Fe

b 20

15

2 M

ar 2

015

2 A

pr 2

015

2 M

ay 2

015

2 Ju

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2 Ju

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2 A

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2 N

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2 D

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70

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110

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130

KRKG SBITOP


Petrol

Petrol is the largest Slovenian energy company. It is present in ten countries and has a network of 487 service stations in South East Europe via its Group companies, also making sales in other EU markets. It is the market leader in petroleum product sales in Slovenia, holding a 58% market share in service stations, with merchandise sales accounting for a significant portion of its rev-enues. The Group is also active in the fields of gas, heat, elec-tricity, energy and environmental solutions and also in the field of renewable energy.

Business Segment: Energy

Market capitalization (EUR m): 533.67



Price change in 2015 (%): -9.93


Bloomberg: PETG SV

Reuters: PETG.LJ

IR Officer: Barbara Jama Živalič

Webpage: www.petrol.si

Petrol’s 2015 Relative Performance Against SBI TOP

2 Ja

n 20

15

2 Fe

b 20

15

2 M

ar 2

015

2 A

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015

2 M

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015

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2 D

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PETG SBITOP

707580859095

100105110115120

Business Segment: Insurance






Bloomberg: ZVTG SV

Reuters: ZVTG.LJ

IR Officer: Helena Ulaga Kitek

Webpage: www.triglav.eu

Triglav’s 2015 Relative Performance Against SBI TOP

2 Ja

n 20

15

2 Fe

b 20

15

2 M

ar 2

015

2 A

pr 2

015

2 M

ay 2

015

2 Ju

n 20

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2 Ju

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2 A

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2 O

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015

2 N

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2 D

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015

70

80

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100

110

120

140

130

ZVTG SBITOP

Zavarovalnica Triglav

With 115 years of expertise, the Triglav Group is the leading in-surance-financial group in Slovenia in the Adria region and one of the leading groups in South East Europe. With parent company and 40 subsidiaries it is present in six countries, and employs over 5,300 people. The Group’s core business is insurance, with other lines of business including third-party asset management.

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Business Segment: Port operator



Price on 30 December 2015 in EUR:

23.00



Bloomberg: LKPG SV

Reuters: LKPG.LJ

IR Officer: Rok Štemberger

Webpage: www.luka-kp.si/eng

Luka Koper

Luka Koper is a multipurpose seaport in Slovenia, with its core business focused on cargo handling and warehousing. It operates the largest container terminal in the Adriatic and is a major automo-tive hub in the Mediterranean. With its excellent geographic position, modern infrastructure and reliable hinterland connections Luka Koper is becoming the leading port operator serving Cen-tral Europe.

Business Segment: Telecommunications




73.01



Bloomberg: TLSG SV

Reuters: TLSG.LJ

IR Officer: Mojca Klopčič

Webpage: www.telekom.si

Telekom Slovenije

Telekom Slovenije is a comprehensive communications service provider in Slovenia, recognised as the leader in introducing and connecting new gen-erations of mobile and fixed communi-cation services, system integration and cloud computing services. Through its subsidiaries it operates in Kosovo, Bos-nia and Herzegovina, Serbia, Croatia and Montenegro.

Business Segment: Home appliances




4.60



Bloomberg: GRVG SV

Reuters: GORE.LJ

IR Officer: Bojana Rojc

Webpage: www.gorenjegroup.com

Gorenje

The Gorenje Group is one of the leading European home appliance manufac-turers. Technologically perfected, su-periorly designed and energy-efficient home appliances under global brands Gorenje and Asko and six regional brands (Atag, Pelgrim, Upo, Mora, Etna and Körting) elevate the quality of life of users worldwide. The Group has been expanding its international sales net-work for half a century and generates 95 percent of revenue outside Slovenia, mainly in Europe.


Business Segment: Reinsurance




12.95



Bloomberg: POSR SV

Reuters: POSR.LJ

IR Officer: Polona Pirš Zupančič

Webpage: www.sava-re.si/en

Pozavarovalnica Sava

Sava Reinsurance Company d. d. is the largest Slovenian reinsurer and one of the largest locally-based non-captive reinsurers in the region of Central and Eastern Europe. It has a solid market position and over 40 years of experience in the insurance industry. In addition to reinsurance services the company also transacts life and non-life insurance products in Slovenia, Serbia, Kosovo, Montenegro, Croatia and Macedonia.

Business Segment: Logistics

Market capitalization (EUR m) 8.92

Free float (%) 43.44

Price on 30 December 2015 in EUR

0.53

Price change in 2015 (%) -55.20

ISIN Code SI0031100090

Bloomberg IEKG SV

Reuters IEKG.LJ

IR Officer: Mateja Tevž

Webpage www.intereuropa.si

Intereuropa

The Intereuropa Group is the leading provider of logistical services in Slovenia and South East Europe. Their integrated range of logistics services covers three key areas: land transport, intercontinen-tal transport and logistics solutions. The Group provides all types of logistics ser-vices through its own business network in nine countries.

Business Segment: Retail




82.00



Bloomberg: MELR SV

Reuters: MELR.LJ

IR Officer: Dean Čerin

Webpage: www.mercatorgroup.si/en/

Mercator

The Mercator Group is one of the larg-est corporate groups in Slovenia and the entire region of South-East Europe. It employs over 21,000 people. Its core business includes retailing fast-moving consumer goods in Slovenia, Serbia and Montenegro, while it also deals in apparel and cosmetics (Modiana, Maxi and Beautique), sportswear and equip-ment (Instersport ISI), home products (Tehnika), and operates self-service pet-rol stations (Maxen).

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Copy deadline: We have prepared this report with the greatest possible care and have checked the data.Nonetheless, rounding, typographic or printing errors cannot be ruled out. Differences may occur due to the automated calculation of the sums of rounded amounts and per-centages.We hereby explicitly point out that the data and calculations given in this report are historic values and do not permit any conclusions to be drawn regarding future performance or value stability. No claim is made as to completeness. The information given in this publication does not constitute any investment advice or investment recommendation by Ljubljanska borza, d d., Ljubljana.The macroeconomic outlooks are a summary of the Institute of Macroeconomic Analysis and Development of the Republic of Slovenia’s publication Slovenian Economic Mirror,April 2016.All of the information on the companies contained in this brochure has been obtained from the companies themselves and has not been checked as to its correctness by the Ljubljanska borza, d. d., Ljubljana. Therefore, Ljubljanska borza, d .d., Ljubljana does not assume any liability for the correctness of said data.This publication is protected by copyright law. Ljubljanska borza, d. d., Ljubljana retains all rights, especially the right to the dissemination, duplication, translation, reprinting and reproduction by means of photocopy, microfilm or other electronic processes as well as the right to store the data on data storage devices – also in the case of only partial realization; all of the aforementioned shall be the exclusive right of Ljubljanska borza, d. d., Ljubljana.

Editorial InformationMedia owner and publisher: Ljubljanska borza, d. d., LjubljanaPlace of publication: 1000 Ljubljana, Slovenska cesta 56Prepress and print: HIŠA GRAFIKE, d.o.o., LjubljanaPlace of production: LjubljanaResponsible for the contents: Ljubljanska borza, d. d., LjubljanaMay 2016

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